Power politics is pushing the Ceylon Electric Board (CEB) into a financial crisis with debts mounting and no increase in revenues. Power politics is pushing the Ceylon Electric Board (CEB) into a financial crisis with debts mounting and no increase in revenues. Government dithering on reforms has put the CEB’s debt restructuring in limbo and the electricity supplier is fast running out of cash.
“We are finding it difficult to pay the long term loan instalments and interest and the CPC (Ceylon Petroleum Corporation). We also owe money to the Independent Power Producers,” said a senior CEB official.
The CEB’s long-term loan instalments and loan interest comes to around Rs 8 bn annually.
“We have taken about Rs 50 bn in loans from international organisations through the Treasury. The annual instalments come to Rs 4 bn – Rs 5 bn a year. Interest is around Rs 2 bn -Rs 3 bn. So totally we must pay around Rs 7 bn – Rs 8bn a year,” said the official.
At this point the CEB also owes another Rs 3.5 bn to the Petroleum Corporation and a further Rs 1 bn to Independent Power Producers(IPPs).
“We are finding